James Pinchbeck

Who would have thought 2021 would be very much like 2020, including for many a further 12 months of working from home, with perhaps the highlights being the seemingly rare chance to participate and attend live events.

The year 2021 undoubtedly was a challenging one for many, if not all our clients, especially those who were at the tail end of the easing of lockdown, including those engaged in hospitality and leisure.

Invariably though our clients, many small and medium sized enterprises, have with true grit and resilience got through. We genuinely believe through providing much needed support and guidance and being on hand we have played our part in looking after them.

The past 12 months saw the need to respond to change, much out of necessity whether it was due to staff shortages, changes in working models or to respond to customer needs. All has led to new and innovative ideas and approaches.

Certainly, we have been busy supporting many technology businesses with new ideas in response to dealing with the impact of the pandemic or to help businesses address productivity issues.

From our firm’s perspective we were particularly delighted to be recognised for our effective, innovative and engaging branding and marketing communications in the Living Ratings of the UK’s top 50 accountancy firms, from Living Group. We climbed to number eight for marketing, brand and digital intelligence.

We also really appreciate the partnership we have with local agency Distract, who have played such an instrumental part in helping us achieve such a great result.

As a firm, 2021 has been another busy year, one which saw the continued development of specialist work in the fields of technology, bloodstock, media and entertainment as well as in terms of the provision of specialist tax work and international advice.

The summer saw the merger of the Luton based practice of S J Males with the firm to form Streets S J Males. The partnership also expanded with the appointment of new Corporate Tax Partner Mustafa Rafik, Business Development Partner Sarah Williams and the promotion of our bloodstock specialist Andrew Diplock to Partner.

We all started to enjoy a great level of freedom as the summer approached in 2021, with perhaps a lack of being able to get out in 2020 helping us to value time away from the home, whether for shopping, sport, leisure pursuits or the chance to catch up with family and friends.

For many it has been a time to reacquaint ourselves with or to get to know better our own surroundings. Certainly, it has been a true pleasure to explore, on bike or foot, more of the countryside around Lincoln and across Lincolnshire.

One such highlight was taking part in the annual C2C2C cycle ride, 100 miles from Lincoln to coast and back, organised by one of our fellow local accountancy firms. Along with other professionals it was a pleasure to sponsor the 10th annual ride in aid of charity. Having ridden all ten, it was even more special and it is great to spend time with professional colleagues and contacts many of whom had not been seen in person for over a year.

Whilst it has been a challenging year in terms of time to give, over and above the day job, it has been an especially rewarding one mentoring Sandra and Chris McDonough of Spalding based EyeGuideMC.

Sandra is truly inspirational, whilst facing the long-term effects of Parkinson’s she has invented, without prior technical knowledge or training, a device that improves the quality of those with the condition. In May this year, EyeGuideMC was officially launched and is now changing for the better the lives of those with Parkinson’s across the UK. Thanks go to Russell Copley for his 10 x 10 growth accelerator for supporting the business and for suggesting the mentoring role.

As we approach the end of the year, we were delighted to once again sponsor and support the Lincolnite’s 30 under 30. It was a delight to attend the celebration event in the Cathedral Chapter House and to meet so many innovative, creative, inspirational and imaginative young people whether pursing enterprise or having a key organisation role.

It was great to see such amazing role models and future business leaders.

2021 certainly has felt like the year of doing it differently and one where innovation and inspiration has been rife.

By James Pinchbeck Partner, Streets Chartered Accountants

Listening to the Chancellor Rishi Sunak’s Budget live, who would have thought that over the last 18 months we have experienced one of the biggest economic shocks and seen unprecedented levels of financial intervention from a government to support our economy and public welfare.

It would be interesting to know if anyone has or was able to tot up the sums of money, billions and millions, pledged and earmarked in terms of public spending over the next few years.

It certainly seemed to be a Budget based on our economic and social prosperity being driven by investment in both the public and private sector. Whilst few predicted that this would be a Budget of tax hikes, it was not unreasonable to think it might have included some, or some inkling of future changes.

It looks like balancing the books is dependent on business innovation and investment, along with public sector and consumer spending giving rise to tax revenues from direct and indirect taxes. 

With government borrowing at a level not seen since the end of the Second World War, there is surely a risk of a bumpy ride ahead if growth targets are not achieved and levelling up doesn’t really lead to levelling up.

The current rise in inflation is being, in part, attributed to increased and renewed global demand, particularly for goods following lockdown. This has led to supply chain issues along with increased energy costs linked to increased manufacturing and supply to meet such demand.

It is given this background coupled with low interest rates that inflation will settle down and so too will supply chain issues. However, perhaps workforce shortages will still be a real concern. The OBR forecast that the UK economy will return to pre-pandemic levels by the turn of the year.

Looking at the plethora of public sector spending announcements, few would disagree with much needed spending being allocated to our health service, education and infra structure projects, especially those that lead to a real levelling up. Those in the public sector will welcome the lift on the freeze for public sector pay increases.

More specific announcements, for businesses in particular, included the reduction in Business Rates for those in the retail, hospitality and leisure sectors including a 1-year discount of 50%, more frequent revaluations – every three years from 2023; and relief for adopting solar panels and a 12-month rate holiday on property improvements.

For those businesses looking to make capital investments, the £1m Annual Investment Allowance will be extended to March 2023, instead of ending in December.

The arts, museums, entertainment and culture sector will no doubt applaud the announcement that the covid support and recovery Creative Tax Reliefs will not only be doubled but that they will now remain in place until April 2023.  

Whilst considering relief those involved in innovation, including research and development, will be delighted to hear about the enhanced reliefs available for R &D, along with increased funding available to support such activity through Innovate UK. For those undertaking research involving cloud computing and data, they will be pleased to hear that such costs are now eligible for tax relief.

Whilst the increase to the National Minimum Wage, for those aged over 23, from £8.91 to £9.50 an hour was announced before the Budget, few were perhaps aware of the pending changes to alcohol duty which focused going forward on these being ‘simpler, fairer and heathier’ – a key winner certainly seems to be English sparking wines and draft pulled beers/lagers all benefit from lower duties.

Moving on to fuel duty, but not advocating a drive to the pub, the good news as we face unprecedent prices at the pump, was that fuel duty will again be frozen.

It would be easy to think perhaps there was little in this Budget, in some ways it would be difficult not to agree. Perhaps the test will be around the impact and effectiveness of what seems to be an unprecedented public sector spending spree. In the Chancellor’s own words, it certainly seems like ‘an age of optimism’.  

For further in-depth commentary of the Autumn Budget & Spending Review 2021 you can still register for Streets’ virtual presentation at 12noon till 1pm on Thursday 28^th October. All those registering and unable to join live will receive a link to the presentation recording and a digital copy of our Budget Summary.  Register here.

James Pinchbeck is Partner at Streets Chartered Accountants, a top 40 UK accountancy practice. James, as a specialist in marketing professional services, is responsible for the development and implementation of the firm's strategic marketing as well as its engagement in the community it which it works and serves. His role allows him to capitalise on his broad interest in the national and local economy as well as his passion for enterprise. As part of his wider interest in enterprise, marketing and education, James is a board member of NBV – the East Midlands Enterprise Agency, an FE College Governor and a board member of the University of Lincoln’s Business School. He is also an Institute of Director’s past Branch Chairman.